Prime Retail’s IPO moves

Kolkata-based Prime Retail has informed the BSE/NSE that they are planning to enter the capital

market with an initial public offer (IPO) of 7,500,000 shares of Rs 10 each. The issue will constitute 45.10 per cent of the post issue paid up capital of the company. The company has filed a Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for the same. Hem Securities is the book running lead manager of the issue.

The premium will be decided via 100 per cent book building process. The IPO price band has not been decided yet. The proceeds of the IPO will be used to open 18 additional stores across India to accomplish a pan India presence and for setting up brand retail outlets, capex stores for proposed outlets, upgrading of information technology network and working capital requirements. The outlets being planned are in three categories: Prime Duets-Fashion Watch Studio, The Price-Luxury Watch Boutique and Exclusive Brand Boutiques. It showcases all items from fashion to premium luxury brands. The company has posted a net profit of Rs 1.62 crores on a total income of Rs 32.05 crores for the period of six months ended on September 2010. The equity shares of the company are proposed to be listed at the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Prime Retail India is an international luxury, designer and fashion watch brand retailer dealing through its chain of stores. The company presently operates 20 stores across India.